2023

AUDITED SUMMARY GROUP FINANCIAL RESULTS

FOR THE YEAR ENDED 28 FEBRUARY 2023

Raubex Group Limited  |  (Incorporated in the Republic of South Africa) Registration number 2006/023666/06  |  Share code: RBX  |  ISIN code: ZAE000093183  |  ("Raubex" or "the Group")

Financial highlights

Felicia Msiza, CEO of Raubex Group, commented:

"In my first year as CEO of Raubex, it is with great pleasure that I report on the Group's results for the year ended 28 February 2023. The Group has delivered an exceptional set of results with record earnings achieved from our diversified portfolio, reflecting solid execution of our strategy.

The performance is largely attributable to the successful completion of our flagship Beitbridge Border Post Project, a full year contribution from Bauba, while SANRAL projects in KwaZulu-Natal gained momentum. The Western Australian operations contributed 19% to the Group's total operating profit, demonstrating the robust performance of these operations.

The Group's performance for the year was not without its challenges, with the country as well as the industries in which we operate facing severe headwinds. However, Raubex's diversified business model, supported by its strong management team, robust balance sheet and healthy cash balance, positioned the Group extremely well in taking advantage of opportunities, both locally and offshore, in unlocking value for our stakeholders as well as navigating the challenging market landscape.

Looking ahead, our focus is on delivering excellent quality to our customers, securing additional high-margin infrastructure projects, containing costs and enhancing efficiencies whilst building on our diversification strategy.

I am grateful for the support and guidance of my predecessor, Rudolf Fourie, and to our Board for their sound counsel and excellent contribution during my first year as CEO.

Across both our African and international operations, Raubex continues to invest in our people. Our employees are key to the success of our Group. I wish to sincerely thank our employees for their unwavering support and loyalty. It is my view that our industry knowledge, operational excellence and teamwork are what will continue to drive Raubex's business performance over the long term and establishing the Group as a key differentiator in the markets we operate in. "

Revenue increased 32.2%

Operating profit increased

Headline earnings per share

to R15.31 billion

35.0% to R1.28 billion

increased 32.1% to

(2022: R11.58 billion)

(2022: R945.3 million)

392.8 cents per share

(2022: 297.4 cents per share)

Earnings per share

Cash generated from

Net asset value of

increased 27.4% to

operations increased 144.9%

R5.80 billion

391.1 cents per share

to R1.96 billion

(2022: R5.22 billion)

(2022: 306.9 cents per share)

(2022: R800.1 million)

Capital expenditure of

Order book of

Final dividend of 76 cents

R1.15 billion

R20.04 billion

per share declared

(2022: R695.9 million)

(2022: R17.13 billion)

(2022: 54 cents per share)

1 Raubex Group Limited | Audited summary Group financial results for the year ended 28 February 2023

Commentary

Financial overview

Group revenue for the reporting period was 32.2% higher than the prior year at R15.31 billion, supported mainly by increased activity on the SANRAL projects in KwaZulu-Natal ("KZN"), the Beitbridge Border Post project and our operations in Western Australia. The full year results for Bauba Resources (Pty) Ltd ("Bauba") were also consolidated into the results for the first time.

Operating profit increased 35.0% to R1.28 billion and the Group operating margin was 8.3% (2022: 8.2%), with the main contributors to the increase being the Beitbridge Border Post project and Bauba. Furthermore, profit before tax increased 33.5% to R1.22 billion (2022: R915.1 million).

The Group's earnings per share increased 27.4% to 391.1 cents (2022: 306.9 cents) and headline earnings per share

rose 32.1% to 392.8 cents (2022: 297.4 cents). Net finance costs increased to R47.2 million (2022: R24.1 million), which was largely attributable to the increase in bank borrowings. Interest on bank borrowings increased to R75.0 million (2022: R34.3 million).

Included in the net impairment gains/(losses) on financial and contract assets is R47.3 million bad debt recovery received from the Zambia Roads Authority.

Cash generated from operations before finance charges and taxation was strong at R1.96 billion (2022: R800.1 million). The inflow for the year was mainly attributable to the increased profits generated at Bauba, the Australian entities and the Beitbridge Border Post project in Zimbabwe. Working capital demand also reduced compared to the previous year.

The Group had a net cash inflow for the year of R155.3 million, with the largest outflows being the acquisition of interest in subsidiaries of R138.1 million and the capitalisation of mine infrastructure and stripping assets at Bauba totalling R268.4 million. Cash and cash equivalents ended the year at R1.70 billion (2022: R1.50 billion).

Trade and other receivables decreased by 5.1% to R1.89 billion (2022: R1.99 billion) for the year, while the average

debt collection days improved to 39 days (2022: 54 days).

Inventories were 29.6% higher at R1.31 billion (2022: R1.01 billion) owing mainly to the increase in development land as well as greater ore levels at Bauba.

Trade and other payables increased by 41.7% to R2.65 billion (2022: R1.87 billion).

Capital expenditure on property, plant and equipment grew to R1.15 billion (2022: R695.9 million). Included in the increased capex requirements are the capitalisation of mining infrastructure development and stripping cost of R268.4 million required at Bauba during the year. The Namdeb project in Namibia also required R180.0 million worth of expansion capex during the year.

Borrowings increased by 26.5% to R1.21 billion (2022: R959.9 million), largely to support financing requirements at Bauba and B&E International Namibia.

Operational overview

Historically, and in the prior year, the Group reported against three operating segments, being Materials, Roads and Earthworks and Infrastructure. During the current year, the information reported to the Group's chief operating decision-maker (Exco) was amended in line with the restructuring of the executive committee to better reflect the increasing scale and complexity of the Group. Accordingly, the Group now reports against four operating segments with the aggregation of segments based on the nature of services and products provided to the market, production processes, and type of customer for the products and services.

Raubex Group Limited | Audited summary Group financial results for the year ended 28 February 2023 2

Commentary continued

The four operating divisions are therefore as follows: Materials Handling and Mining;

  • Construction Materials;

Roads and Earthworks; and

  • Infrastructure.

Materials Handling and Mining Division

This division comprises four main disciplines including (i) contract crushing; (ii) materials handling and processing services for the mining industry; (iii) contract mining; and (iv) specialised resource ownership. Results from the operations of newly acquired Bauba are reported under this division.

B&E International's margins reflect continued weak demand experienced by contract crushing operations for the construction sector. The recent award of a 60-month contract with Namdeb Diamond Corporation (Pty) Ltd for the provision of mining services at Southern Coastal Mines in Namibia secures a good baseload of work over the next five years. Establishment is progressing well, and production should ramp up to full capacity in May 2023.

Work in Mozambique which was suspended in the previous financial year due to the terrorist insurgency remained suspended throughout the current year. At Pemba's quarry operations, holding costs of around R1 million per month are being incurred in anticipation of work restarting in the area. In light of the continued uncertainty in Mozambique, the Group also made a decision to write down the full stockpile at Pemba in February 2023 to the value of R50.4 million.

At SPH Kundalila ("SPH"), materials handling operations had a slow start to the year and projects at Kloof and Driefontein came to an end, while strike action at Sibanye negatively affected the results for the year. Material handling operations at Bauba's Kookfontein mine are performing well.

SPH will focus on successfully executing current projects and will also focus on development of its current exploration projects and opportunities where key investments were made, including Arcadia, Bauba, Dune Resources and VR8. These opportunities should sustain and secure good returns into the future.

At OMV, extraordinary increases in fuel and energy-related expenses placed pressure on margins and sales prices. The company is focused on driving production efficiencies and reducing input costs to maximise margins. Diversifying the product range is expected to support an increase in turnover and profitability going forward.

The bulk of the division's profit for the year was generated by Bauba, supported by the successful turnaround strategy and working capital injection by the Group, which positively impacted production at both the Moeijelijk and Kookfontein mines. Bauba continues to explore opportunities to increase its mineral resources and improve production efficiencies through improved maintenance and standardisation of plant as well as enhancing mine capital infrastructure to reduce operating costs. In-house product beneficiation will further increase margins and sales volumes.

Revenue for the division increased 78.6% to R2.88 billion (2022: R1.61 billion) and operating profit increased by

35.8% to R168.6 million (2022: R124.1 million) while the operating profit margin was 5.9% (2022: 7.7%).

The division incurred capital expenditure of R693.9 million during the year (2022: R318.3 million) and has secured

an order book of R3.65 billion (2022: R1.89 billion). Included in the R693.9 million capital expenditure is the capitalisation of mining infrastructure development and stripping cost of R268.4 million at Bauba.

3 Raubex Group Limited | Audited summary Group financial results for the year ended 28 February 2023

Construction Materials Division

This division specialises in the production and supply of materials to the construction market, including aggregates from commercial quarries, asphalt and value-added bituminous products.

The fuel price increase and continued loadshedding during the year had a negative impact on production and profit margins across the whole division. Initiatives aimed at expanding volumes and reducing costs remain a key focus across all operations.

The commercial quarry operations in South Africa performed well with increased volumes in the Northern and Southern region, delivering strong operating cash flows despite lower margins. The Transkei quarry operations returned to profitability following the completion of the plant upgrade in Mthatha during March this year. Quarry operations in Botswana were challenged by margin pressures and lower sales volumes in the region due to a slowdown in demand and increased competition.

Adverse weather conditions as well as a slower-than-expectedtake-off on the N3 road construction projects negatively impacted the KwaZulu-Natal (KZN) asphalt operations in the reporting year. Going forward, however, demand for asphalt on the current N3 projects will be high and a key focus for the year will be the delivery of a quality product on time to support the roads contractors.

Demand for asphalt in the rest of KZN is however lower and the Group made a decision to geographically reposition the footprint in the province to align with the market demand. This should result in a reduced cost base and improved margins going forward.

In the rest of South Africa, asphalt operations performed well, exceeding budget expectations. Looking ahead, 70% of the order book for the 2024 financial year is already secured.

Due to a shortage of bitumen in South Africa, Tosas had to resort to imports during the reporting year. Securing a supplier with good quality and reliable delivery time was challenging but was ultimately successfully managed. The increased demand for the supply and application of bitumen products during the summer months resulted in a good second half of the year. This also assisted in reducing the elevated stock levels from earlier in the year and supported an improvement in working capital.

Prospects arising from the recent award of SANRAL tenders are positive, and we anticipate a potential increase in volumes in the new financial year.

Revenue for the division increased 1.9% to R1.88 billion (2022: R1.84 billion) and operating profit decreased by

54.4% to R81.5 million (2022: R178.9 million) while the operating profit margin was 4.3% (2022: 9.7%).

The division incurred capital expenditure of R138.7 million during the year (2022: R179.9 million) and has a secured

order book of R1.00 billion (2022: R0.87 billion).

Roads and Earthworks Division

This division specialises in road construction and earthworks as well as road surfacing and rehabilitation. This includes the laying of asphalt, chip and spray, surface dressing, enrichments, and slurry seals.

The division is primarily dependent on the South African road construction sector through its construction capacity and is directly and indirectly exposed to government expenditure on road construction and maintenance in the country.

Raubex Group Limited | Audited summary Group financial results for the year ended 28 February 2023 4

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Raubex Group Ltd. published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 05:26:03 UTC.